Arista Networks (ANET)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	2,422,026	2,213,480	1,993,134	1,769,053	1,581,796	1,363,239	1,173,715	1,032,479	930,879	863,771	830,750	784,911	738,863	725,855	772,011	817,414	862,270	873,588	815,202	352,582
Revenue (ttm)	US$ in thousands	5,860,170	5,595,280	5,262,620	4,855,590	4,381,306	3,930,215	3,502,112	3,157,541	2,948,037	2,772,060	2,628,794	2,462,045	2,317,512	2,221,576	2,274,860	2,342,611	2,415,006	2,458,186	2,362,107	2,272,951
Pretax margin		41.33%	39.56%	37.87%	36.43%	36.10%	34.69%	33.51%	32.70%	31.58%	31.16%	31.60%	31.88%	31.88%	32.67%	33.94%	34.89%	35.70%	35.54%	34.51%	15.51%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $2,422,026K ÷ $5,860,170K
= 41.33%

The pretax margin of Arista Networks Inc has shown a consistent upward trend over the past eight quarters, reflecting improvement in the company's ability to generate earnings before taxes relative to its revenue. The company's pretax margin increased from 32.70% in Q1 2022 to 41.33% in Q4 2023, indicating a positive trajectory in profitability. This suggests that the company has been effectively managing its costs and expenses while increasing its revenue, leading to higher profitability levels. Overall, the increasing pretax margin signals financial stability and efficiency in Arista Networks Inc's operations over the analyzed period.